Nope, things are as “cordial” as ever between the activist hedge fund manager and E. coli purveyor, with a deal putting a Pershing Square representative—and a bunch of other people who haven’t been directors for more than a decade—on the board apparently still near. Given the lack of “fundamental disagreements,” Ackman was apparently A-OK with the dual-CEO structure. No, it was apparently other meddlesome investors wondering why they were paying for two CEOs to preside over the missteps, disasters and oversights that could easily have been accomplished by one, to insist that one must go.
Montgomery F. Moran, a co-chief executive who has long presided over the company’s operations, will step down early next year, the company announced Monday morning. It also said it would be changing the board….
Mr. Ells said Mr. Moran’s departure was not at Pershing Square’s behest. But other investors have been clamoring for change.
Investors have criticized Chipotle’s co-CEO structure, saying the company spends too much on executive compensation. Total pay for co-CEOs Monty Moran and Mr. Ells last year totaled $13.3 million and $13.6 million, respectively.
Mr. Moran, friends with Mr. Ells since high school, joined Chipotle in 2005 as its general counsel and became co-CEO in 2009. The company said on Monday that Mr. Moran has stepped down from the co-CEO role and from his board seat, effective immediately.